By TRN Online, Kathmandu, Dec. 19: The Balance of payment (BOP) remained in a deficit position persistently for the last four months of the current fiscal year (FY).

Nepal Rastra Bank (NRB) monthly report, “Current Macroeconomic and Financial Situation” showed that the BOP deficit in the mid-August, mid-September, mid-October, and mid-November have been Rs. 38.75 billion, Rs. 83.42 billion, Rs. 76.13 billion, and Rs .150.38 billion respectively.

Unlike the current FY, the previous year's annual report had depicted a surplus BOP. According to the report, the BOP surplus of the last FY remained Rs. 1.23 billion.

The report showed that a massive current account deficit has spurred the BOP deficit in the current FY.

According to the report, the current account deficit in the mid-August, mid-September, mid-October, mid-November cumulatively went up to Rs. 47.90 billion, Rs. 106.75 billion, Rs. 151.70 billion, and Rs. 223.19 billion respectively.

Meanwhile, the capital account has been debited by a significant amount of capital transfer which supported payment inflow.

The net capital transfer amount of Rs. 2.5 billion is recorded in the current FY. Similarly, a significant amount of net liability is also created in the financial account. The net liability amount of Rs. 210.7 billion is recorded in the current FY.

The capital and financial account showed that a good inflow of foreign currency is witnessed in the current FY. However, a massive deficit in the current account outweighed the favourable balance in the capital and financial account that led to the huge BOP deficit.